ATLAS COPCO Interim report at June 30, 2004 (unaudited)

July 16, 2004

Strong sales and profit growth

Order volumes up 11%, 4% negative currency translation effect. Revenues reached MSEK 12 079 (11 148), up 10% in volume. Operating profit margin increased to 13.3% (11.7). Profit after financial items increased 25% to MSEK 1 518 (1 212). Net profit increased to MSEK 1 014 (810). Earnings per share was SEK 4.84 (3.87). Operating cash flow totaled MSEK 821 (1 424). Decision to divest the professional electric tool business. Near-term demand outlook  The positive demand trend for Atlas Copco's products and services is expected to continue.  In North America, demand from the manufacturing and process industries is expected to increase, while the non-residential construction sector is expected to remain largely at present level. In Europe, demand is expected to continue to increase somewhat, with Eastern Europe still providing the best opportunities for growth. The strong development in Asia is foreseen to continue, but at lower rate than in the most recent quarters. The full report